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HomeMy WebLinkAboutGBA 2008-05-13 MinutesMINUTES OF THE MEETING OF THE GAS BOARD OF APPEALS OF THE CITY OF NORTH RICHLAND HILLS, TEXAS March 13, 2008 1. CALL TO ORDER The meeting was called to order by Chairman Tom Duer at 6:30 p.m. 2. ROLL CALL PRESENT CITY STAFF Assistant Dir. Public Works Assistant Fire Chief Lieutenant Recording Secretary Tom Duer Randy Shiflet Kathy Luppy Garry Cope Brad Greene Greg VanNeiuwenhuize Kirk Marcum Greg Lindsey Tanya Hope 3. APPROVAL OF NOVEMBER 8, 2007 MINUTES APPROVED Randy Shiflet, seconded by Garry Cope, motioned to approve the minutes from November 8, 2007. The motion carried unanimously (5-0). 4. G62006-04R1 Continuation of Public Hearing and consideration of a request from Metroplex Barnett Shale LLC for an extension of time from screening and landscaping requirements at the gas well site located in the 7000 block of Hightower Drive. Kathy Luppy asked to abstain from voting on these proceedings because she has signed a lease with the Harding Company. Page 1 of 4; 03/13/08 GBA minutes Tom Duer asked City Staff whether or not Gas Board of Appeals was simple majority voting. Greg VanNeiuwenhuize said yes. Mr. Duer also asked City Staff if it was recommended to swear in. Randy Shiflet said they have not in the past. Steve Smith, Vice President of Operations, 4109 Williams Court, Grapevine, TX came forward representing the Harding Company. Mr. Smith explained that the second well, Graham Unit 1-2H`s rig was released February 25, 2008 and that the fracturing would begin on March 17, 2008. Mr. Smith explained that Metroplex Barnett Shale has run into additional logistical aspects with electrical easements. Mr. Smith expressed concerns in regards to the wall being built in conjunction with the frac operations. Mr. Smith explained that once the frac job begins, it should take a week to do the pumping; it would be a 4-5 stage frac job with 2 stages being able to be completed during the day and it's hopeful to be completed within a week. There will be equipment moving in and equipment already on site such as a frac tank and dirt moving equipment. Mr. Smith said that they still have not moved the dirt from the last drilling because they were awaiting some sediment to be evaluated which he believes has now been taken care of. The wall that needs to be moved should be underway this weekend or the first of next week. Mr. Smith requested a 45 day extension from the original date that the wall needed to be completed. In November the Gas Board of Appeals ruled that the wall needed to be completed by April 1, 2008. Mr. Smith said that he couldn't guarantee that the wall would be finished by April 1, 2008 but can assure will be completed within the 45 day extension. Garry Cope asked Mr. Smith for the date of completion? Mr. Smith answered that he believes 45 days from the April 1 original date. Mr. Cope asked May 15, 2008? Mr. Smith said yes. Tom Duer stated that the Board received literature stating that the frac job was scheduled to start March 27, 2008 and questioned if the fracturing would begin sooner than scheduled. Mr. Smith said yes. Mr. Smith explained that you get on a list when the fracturing equipment would be available and they were able to get the equipment earlier than anticipated. The equipment would be moving from Arlington to North Richland Hills. Due to the competitive nature of the business, you get on a waiting list for equipment and are subject to when the equipment would be available. Page 2 of 4; 03/13/08 GBA minutes Michael Evans, 1305 Brook Harbor Drive, Mansfield, TX came forward representing JEA Hydrotech. Mr. Evans explained the coordination between Oncor and Mr. Graham in regards to the utility easement in that there is a 100 ft drainage easement that goes down the west side of Mr. Graham's property that is platted in connection with Graham Ranch Estates. The east line of the 100 ft is the electrical easement that needs to be negotiated with Mr. Graham and Oncor. In addition to the wall there is the issue of being able to get electrical service to the site. Those issues are still ongoing and are contributing to the problem of the April 1, 2008 deadline. Mr. Cope asked if the west retaining wall will have an affect on the drilling of the remaining 3 wells? Mr. Evans said no and explained that the way the rig was situated was to move from the west to the east. The 1 H well was the most western well on the site. The production equipment and the northern and western walls will not affect the drilling on the Graham site. Mr. Cope then asked about the entire site being walled by the end of the year for the December 31, 2008 deadline? Rob Schultz came forward representing Exxon Mobil. Mr. Schultz said that the current rig schedule calls for the last 3 wells to be drilled in the October-November time frame. The rig schedule is dictated by what leases are expiring and where. They are aware that there is a drop-dead date of December 31, 2008. Mr. Schultz explained that it took 4 months to get Mr. Graham to sign the electrical easement. Mr. Graham would not accept the form from Oncor. There have been 3 different meetings to establish the right of the electrical service. Mr. Schultz explained that the operations are being run off of generators at this time which is not the preferable mode of operation. As of right now the electrical line is going to be placed 5 feet from where the western wall is supposed to go. Randy Shiflet asked if the electrical easement was anticipated to be in a different location earlier or if it they believed that there wouldn't be any problems in relation to the electrical easement. Mr. Schultz explained that the original discussions with Oncor are that Oncor would install a line and bring a pole line down the side of the property. Oncor would bring the line to the well site however Mr. Graham required that the line be buried 6 feet. Ben Johnson, 1712 Oak Knoll Dr, Colleyville, TX came forward as a land developer and someone with a vested interest in the on goings at the well site. Mr. Johnson explained that he owns the 22 acres adjacent to the Graham Ranch well site directly west. Mr. Johnson is attempting to develop it into approximately 96 residential lots; upscale, unique community with the price ranging starting at $300,000. Mr. Johnson recommends that the Board members allow the extension but also to recognize that with such a heavy industrial operation there is time and effort involved and when third parties get involved that delays could happen. Mr. Johnson also asked that the extensions are not infinite. Mr. Duer asked if after the wall is up and the landscaping is complete if he's experienced any reluctance to buy a home? Mr. Johnson said that he was aware of the Page 3 of 4; 03/13/08 GBA minutes challenges going in but he believes that once the well is a producing well with the walls and trees in place that it would be an asset to the neighborhood. Mr. Cope asked when Mr. Johnson was going to start his developing? Mr. Johnson said he was hoping to start turning dirt in the next 30-45 days however he didn't believe that the well would impact any property sales until the end of the year, beginning of next year. Mr. Shiflet commented that as of today, the end of the year is the deadline for the drilling operations at Graham Ranch. With no further requests to speak, Mr. Duer closed the public meeting at 6:55pm. Greg VanNeiuwenhuize spoke on behalf of City Staff. Mr. VanNeiuwenhuize explained that currently the western wall was to be completed by April 1, 2008 and the entire site, walled in and landscaped, by December 31, 2008. Staff recommends that they extend the April 1, 2008 date to May 16, 2008 and that the entire site be completed as planned. Randy Shiflet, seconded by Brad Greene, motioned to approve GB 2006-04R1 The western wall being completed May 16, 2008 and final completion of the wall December 31, 2008. The motion carried unanimously (4-0) with Kathy Luppy abstaining. 5. ADJOURNMENT The chairman adjourned the meeting at 7:00 p.m. Chairman Tom Duer Secretary ~~p. K thy Luppy Page 4 of 4; 03/13/08 GBA minutes